In Brief: Cal Fed Parent's Profits Up 49%, to $71M

Improved margins helped Golden State Bancorp, the parent of California Federal Bank, post a first-quarter net income increase of 49%, to $71 million.

Because California Federal bought Glendale Federal Bank in September through a purchase transaction, the net income figure was not adjusted to account for the additional earning assets.

Regardless, the San Francisco-based thrift company beat analysts' per share consensus earnings estimate of 44 cents by 6 cents. Net interest margin at the $56 billion-asset thrift company climbed to 2.37%, from 2.1% in the year-earlier period. The improvement largely was driven by the thrift's ability to book more transaction accounts, analysts said.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER